California Securities Fraud Attorney Call Today 800-699-1881
California Securities Fraud Lawyer Firm Overview Attorney Profiles Recoveries Obtained Frequently Asked Questions Testimonials Contact Us
information center
Attorney Advertising Disclaimer
Broker Misrepresentation
Brokerage Firms Sued
Structured Products
Hedge Fund Losses
Recognizing Investment Losses
Recovery of Investment Loss
Securities Arbitration
Reverse Convertible
Securities Fraud
Securities Mediation
Securities Litigation
Stock/ Investment Losses
Suitability/ Unsuitability
Unauthorized Trading
Common Claims
Frequently Asked Questions
Attorney Referrals
Video Center
securities fraud blog
legal blog Click here for a free case evaluation. Read our Articles on Securities Related Issues here. have a question resources
contact us
Are you a new client?
10 Avvo avvo badge
If you need help recovering your losses contact us today. View our complete list of brokerage firms and banks we've sued.

FINRA Fines Citigroup $15 Million for Supervisory Failures in IPO Research and Non-Public Communications

FINRA fined Citigroup Global Markets, Inc. $15 million for its failure to adequately supervise both internal and external communications related to equity research, furthermore allowing an equity research analyst to participate in two road shows promoting initial public offerings (IPOs) to investors. The investigation states that because of this failure, certain clients gained access to non-public information that Citigroup did not make available to other customers.

FINRA Case #2013036054901

According to the findings, Citigroup's decade-long misconduct took place from 2005 to 2014 and included multiple failures that prevented timely detection and/or dissemination of information that was in conflict or inconsistent with firm equity research analysts' public and published research information.

Investigators found that this failure manifested during "idea dinners" hosted by Citigroup equity research analysts and attended by certain institutional clients and sales and trading personnel. The report states that during these dinners, research analysts discussed stock picks which occasionally were inconsistent with those same analysts' public and published research.

For example, one Citigroup affiliate analyst in Taiwan selectively disseminated to certain clients information pertaining to Apple Inc. properties, including stock and AAPL iPhone order information, which was in turn disseminated to a select group of additional clients by a Citigroup equity sales employee, effectively shutting out an entire class of clients from information about Apple Inc. that Citigroup employees made available to certain other customers.

In its complaint, FINRA accused Citigroup of failing to enforce permissible communication boundaries, which in turn provided such an atmosphere for analysts to "provide certain clients with improper access to non-public research information."

FINRA also found that in 2011, a Citigroup senior equity search analyst helped two companies in creating presentations for investment banking road shows—between 2011 and 2013, Citigroup did not explicitly prohibit its staff from assisting issuers in these preparations.

If you have invested with Citigroup Global Markets or with any firm whose supervisory failures related to IPO or other equity research deficiencies, such as unequal access to research information, has proven harmful to your investment opportunities or interests, please call The Law Offices of Jonathan W. Evans & Associates at (800) 699-1881 for investigation and consultation.

News Release: FINRA Fines Citigroup Global Markets Inc. $15 Million for Supervisory Failures Related to Equity Research and Involvement in IPO Roadshows (FINRA)

The Law Offices of Jonathan W. Evans & Associates - California Securities Fraud Attorney
Located at 12711 Ventura Boulevard, Suite #440 Studio City, CA 91604. View Map
Phone: (800) 699-1881 | Local Phone: (818) 760-9880.